Australian Dollar May Rally Further as Crowds Sell
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.12 as 47% of traders are long. Yesterday the ratio was -1.31; 43% of open positions were long. Long positions are 1.1% higher than yesterday and 2.4% below levels seen last week. Short positions are 13.6% lower than yesterday and 5.7% above levels seen last week. Open interest is 7.2% lower than yesterday and 3.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the AUDUSD may continue higher. The trading crowd has grown less net-short from yesterday but further short since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:NZDUSD - New Zealand Dollar Sentiment Points to Weakness
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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